Company Number: 15182004

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk, evidenced by negative net current assets (£-3,255) and low cash balances (£122). Additionally, the presence of finance lease obligations due within one year (£3,058) adds pressure to meet short-term liabilities. The very low net assets (£97) further underline limited financial buffer.

2. Key Concerns:

• Liquidity shortfall: Current liabilities (£10,481) exceed current assets (£7,226) notably, driven by finance lease obligations and trade/other creditors.
• Leverage via finance leases: Total lease obligations of £4,649 with a substantial portion due within one year could strain cash flows.
• Minimal equity and net assets: Shareholders’ funds are marginal (£97), indicating limited capital cushion to absorb losses or finance growth.

3. Positive Indicators:

• Active compliance: No overdue filings for accounts or confirmation statements, suggesting good regulatory adherence.
• Single controlling director/owner: Siobhan Patricia Keppler holds 75-100% ownership and voting rights, which may provide swift decision-making and aligned interests.
• Tangible fixed assets: Some investment in fixtures and fittings (£4,943 net book value) indicates operational setup in the fitness facilities sector.

4. Due Diligence Notes:

• Investigate the nature and terms of the finance lease agreements to assess the impact on cash flow and potential refinancing risk.
• Review detailed cash flow forecasts and working capital management practices to understand liquidity management.
• Understand revenue streams and contract terms underpinning the debtors (£7,104) to verify their collectability and timing.
• Assess the business model viability given the start-up status (incorporated October 2023) and limited operating history.
• Confirm any contingent liabilities or off-balance sheet exposures not disclosed in the accounts.